When that knock comes on your door and you want to hide because you know it's the IRS there are some simple things you should do and not do. First and foremost you will want to consult with a qualified tax professional. You will typically want to then file all of your tax returns. It doesn't matter if you can afford to pay the IRS or not. Not filing your tax returns is a crime! Do your part to be cooperative and meet the deadlines discussed in the IRS correspondence. Lastly, treat IRS employees with respect, even if you don't want to.
The IRS is knocking on your door, calling your phone, and sending threatening letters in the mail. You are scared. You may feel overwhelmed. Perhaps you have not filed your tax returns for a few years, or you simply don't have the funds to pay what you owe the IRS. The question on your mind is "Will I go to jail?" My answer is: It depends, and it's good to know that many options are available.
In 2006, Will Smith starred in a movie called "The Pursuit of Happyness", a true story about Chris Gardner, a man with a 5-year old son who ends up homeless on the streets of San Francisco. Smith was nominated for an Academy Award and a Golden Globe Award for his part in this inspiring film, which tells with an unblinking eye the real-life story of a man's struggle with a string of back luck coupled with questionable decisions.
If you are feeling the pinch when it comes to taxes, the IRS is going to do more for those who are financially strapped and unable to clear tax debts.
When the Fresh Start initiative started in 2008, the IRS announced that it would provide taxpayers with lien relief if they are were trying to sell or refinance a property. New flexibility was added in 2009, along with expanded thresholds for small business owners.